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The fuel cells market for automotive industry market is valued at USD 0.82 billion as on 2017, is anticipated to be valued at USD 6.32 billion in 2027 and grow at a CAGR of 26.7% during the forecast period.
Analysis Period | 2017-2027 |
Market Size (2017) Historic Year | USD 0.82 billion |
Market Size (2027) - Forecasted Year | USD 6.32 billion |
Historic Opportunity (2017-2021) | USD 0.66 billion |
Historic CAGR | 15.86% |
Forecasted Opportunity (2023-2027) | USD 4.38 billion |
Market Opportunity Transformation Growth | 671.69% |
Market Opportunity Capitalization | USD 5.04 billion |
This fuel cells market for automotive industry report extensively covers market segmentation by fuel type (hydrogen and methanol), application (light-duty vehicles, heavy-duty vehicles, and others), and geography (APAC, North America, Europe, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The advantage of hydrogen fuel cell vehicles is the key factor driving the growth of the fuel cells market size. Globally, there is growing interest in reducing greenhouse gas emissions, of which the transportation sector makes a significant contribution, leading governments around the world to impose strict regulations. Fuel cell vehicles are more efficient than gasoline vehicles because hydrogen is the main source of energy and in the process of releasing energy it only releases water vapor and carbon dioxide, hot air into the atmosphere from the exhaust pipe.
Moreover, fuel cell electric vehicles offer benefits similar to those associated with using an electric vehicle in terms of range and emissions control without sacrificing the convenience of easy refueling. The advantages of fuel cell vehicles over conventional internal combustion engines and electric vehicles have driven the adoption and development of these vehicles, which is expected to drive the growth of the market during the forecast period.
An increase in R&D investment and activities is the primary trend shaping the growth of the fuel cells market growth. Fuel cell companies are investing heavily in R&D, which is leading to a reduction in the size of components, such as fuel cells and tanks, making them suitable for compact spaces. A number of universities and government agencies as well as industry stakeholders participate in research and demonstration projects to introduce new technologies to industry.
Over the years, demonstration projects, field trials, and R&D activities have helped reduce fuel cell costs, with suppliers using various low-cost metals to reduce fuel cell costs. Fuel cell suppliers are working to find alternatives to platinum. Additionally, innovative concepts help to improve efficiency and reduce the costs of hydrogen vehicle refueling facilities, thereby driving the growth of the market during the forecast period.
The high cost of installation of fuel cells is a challenge that affects the growth of the market. The cost of installing a hydrogen gas station at an existing gas station is nearly USD 0.8 million, while the cost of building a new hydrogen gas station is estimated to be nearly three times the cost of installing a hydrogen gas station. High construction costs give electric vehicle charging stations a competitive advantage. Additionally, the construction of electric vehicle charging stations is subsidized by the government in most countries.
Additionally, without government support, building FCEV refueling stations remains a major challenge because the costs of creating entirely new hydrogen production and distribution infrastructure are enormous. For natural gas stations, the main product is readily available, while electric charging facilities are growing rapidly. Therefore, this will impede the growth of the market during the forecast period.
The fuel cell market report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Fuel Cells Market for Automotive Industry Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
The research report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The hydrogen segment is estimated to witness significant growth during the forecast period. Hydrogen fuel cells generate electricity through an electrochemical process that merges hydrogen and oxygen to create water and release energy. This energy is used to power the electric motor that drives the vehicle. Hydrogen fuel cell adoption has risen in recent times due to benefits such as zero emissions, fast refueling, long-range, and reduced dependence.
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The hydrogen segment was the largest segment and was valued at USD 537.87 million in 2017. Automakers such as Toyota, Honda, Hyundai, and Mercedes-Benz have raised hydrogen fuel cell vehicles into the auto market, but they are often offered in limited quantities and in specific regions. Commercial vehicles such as buses and trucks are also being researched to incorporate hydrogen fuel cells. Integration of hydrogen fuel cells in commercial and non-commercial applications is expected to drive the growth of the global automotive fuel cell system market during the forecast period.
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APAC is estimated to contribute 44% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. The automotive fuel cell market in APAC is expected to witness steady growth driven by the need to reduce energy consumption in the transportation sector. Countries such as Japan, China, and India in the APAC region are working to develop emissions regulations that meet European standards.
Furthermore, Japan is promoting fuel cell vehicle adoption in the region through capital subsidies and domestic fuel cell vehicle promotion targets. Besides Japan, efforts to deploy fuel cells in the automotive sector are also growing in countries such as China and India, which have the potential to become the world's largest fuel cell markets. Thus, such factors will drive the growth of the automotive fuel cell system market during the forecast period.
In 2020, the outbreak of the COVID-19 pandemic negatively affected the automotive fuel cell system market in APAC. However, in 2021, the initiation of large-scale vaccination drives?lifted the lockdown restrictions, which led to the resumption of activities in manufacturing industries. Moreover, the reduced production of combustion engines, South Korea's resumption of production of fuel cells, and planned projects related to hydrogen mobility are expected to drive the growth of the market in the region during the forecast period.
The fuel cells market for automotive industry report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Fuel Cells Market Scope For Automotive Industry |
|
Report Coverage |
Details |
Page number |
167 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 26.7% |
Market growth 2023-2027 |
USD 4,382.26 million |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
25.55 |
Regional analysis |
APAC, North America, Europe, South America, and Middle East and Africa |
Performing market contribution |
APAC at 44% |
Key countries |
US, Japan, South Korea, China, and Germany |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Acumentrics Inc, Ballard Power Systems Inc., BorgWarner Inc., Ceres Power Holdings plc, Cummins Inc., Daimler AG, ElringKlinger AG, Hyster Yale Materials Handling Inc., Hyundai Motor Co., Intelligent Energy Ltd., ITM Power plc, Nedstack Fuel Cell Technology BV, Nel ASA, PRAGMA INDUSTRIES, Proton Motor Fuel Cell GmbH, The Symbio SAS, TW Horizon Fuel Cell Technologies, Valmet Automotive Group, W. L. Gore and Associates Inc., and PowerCell Sweden AB |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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